Bascom Group Scores $235M Refi
- Aug 19, 2019
The Bascom Group has closed on a $235 million refinancing of an 11-property multifamily portfolio spanning five states: California, Colorado, Arizona, Texas and Nevada.
All of the properties are part of Bascom Value Added Apartment Investors II LLC, a Bascom discretionary fund. The majority of the new loans are interest-only with spreads over LIBOR ranging from 180 basis points to 200 basis points, with interest only periods of two to three years.
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Several brokerage firms and lenders were part of Bascom’s refinancing deal. A CBRE team of Brian Eisendrath and Annie Rice, a JLL team of Charles Halladay and Jamie Kline and a Talonvest team of Tom Sherlock and Erich Pryor arranged the debt financing. Comerica Bank provided five loans, Silvergate Bank provided two loans and TCF Bank, New York Life, Citizens Business Bank and Texas Capital Bank all provided one loan each.
The portfolio refinancing produced more than $39 million in additional loan proceeds, as well as a 16 percent decrease in portfolio debt service payments, according to Bascom, which said in its announcement that the refinancing allowed the firm to cash out significant equity while still improving its projected returns.
Residential communities included in the refinancing are: The Square Apartments in Downey, Calif., Camden Village Apartments in Fremont, Calif., Del Flora Apartments in Redlands, Calif., Courtyard on 68th Apartments in San Diego, Juniper Terrace Apartments in Escondido, Calif., Southtown at Main Apartments in Santa Ana, Calif., 52nd Marketplace in Arvada, Colo., Prescott Lakes Senior Apartments in Prescott, Ariz., McKinney Orchid Apartments in McKinney, Texas, and Fifty 101 and Lyric Apartments, both in Las Vegas.